- This notice is published pursuant to the Private Securities Litigation Reform Act of 1995 (“PSLRA”), 15 U.S.C. § 78u-4(a)(1)-(3)(B)(i).
Washington, DC – November 3, 2022 – Cohen Milstein Sellers & Toll PLLC represents plaintiff Pengcheng Si in the only class action lawsuit filed against Bed Bath & Beyond, Inc. (“Bed Bath & Beyond” or the “Company”) (NASDAQ: BBBY), RC Ventures LLC, JP Morgan Securities LLC, and Ryan Cohen, in the United States District Court for the District of Columbia (1:22-cv-02541). The class action was originally filed on August 23, 2022, on behalf of all persons and entities that purchased or otherwise acquired BBBY common stock between March 25, 2022, and August 18, 2022, for violations of the Securities Exchange Act of 1934.
On November 2, 2022, Plaintiff Pengcheng Si filed an Amended Complaint on behalf of all persons and entities that purchased or otherwise acquired Bed Bath & Beyond’s common stock (including those who bought to cover a short position) or call options, or sold Bed Bath & Beyond put options, from August 12, 2022 through August 18, 2022.
Investors have until November 7, 2022, to move the Court to serve as lead plaintiff in the lawsuit.
What is this Case About
The Complaint alleges that Bed Bath & Beyond Corporation (BBBY) Insiders have engaged in securities fraud and market manipulation practices to enable an aggressive pump-and-dump scheme.
In March 2022, through his investment firm RC Ventures LLC, Ryan Cohen, who also serves as chairman of GameStop Corp., bought a nearly 10% stake in BBBY. On March 25, 2022, Bed Bath & Beyond added three new directors appointed by Ryan Cohen’s investment firm, RC Ventures LLC. By July 26, 2022, Bed Bath & Beyond’s stock price had fallen to just $4.60 per share.
On August 12, 2022, Ryan Cohen posted a tweet on his Twitter account that was understood by many retail investors to indicate that Cohen believed that Bed Bath & Beyond’s stock price would or was likely to rise. That day, Bed Bath & Beyond’s stock price rose by 21.83% to close at $10.63 per share.
On August 15, 2022, Ryan Cohen, through his investment firm RC Ventures LLC, filed a report with the SEC that reported his holdings of Bed Bath & Beyond securities, including January 2023 call options with exercise prices at $60, $75, and $80 – significantly higher than BBBY shares were trading. On August 16, 2022, Cohen filed an amended Schedule 13D/A with the SEC that indicated that he beneficially owned 9,450,100 shares – approximately 11.8% of the shares outstanding – of BBBY.
On this news, BBBY stock closed 29.06% higher on August 16, 2022, compared to its close on August 15, 2022, on extremely heavy trading volume.
However, the Complaint alleges that the August 12 tweet and August 16 Schedule 13D/A filing were materially false and misleading because Cohen had planned, proposed, or formulated an intent to sell some or all his holdings of Bed Bath & Beyond securities at the time those statements were made. The Complaint further alleges that Cohen made those statements as part of a scheme to manipulate the securities markets for the purpose of artificially inflating the price and trading volume of Bed Bath & Beyond securities.
From August 16 to 17, Cohen liquidated his entire holdings of Bed Bath & Beyond securities, including 7.78 million shares of common stock and 1.67 million shares underlying call options, earning a profit of approximately $58 million.
Cohen also filed a Form 144 via email providing notice of his intent to sell up to all his shares and additional call options. This filing was not disclosed to the public until shortly before the markets closed on August 17, 2022. By that time, Cohen had finished dumping his holdings of Bed Bath & Beyond securities. After the Form 144 became public, the price of Bed Bath & Beyond common stock tumbled in after-hours trading from a high of $30.00 per share to $18.85 per share.
On August 18, 2022, after the markets had closed, Cohen filed a new amended Schedule 13D/A, which disclosed that he had sold his entire holdings of Bed Bath & Beyond securities on August 16 and 17. On the news, Bed Bath & Beyond’s stock plunged by 44.6% in after-hours trading.
Bed Bath & Beyond’s stock price continued to decline over the following days and weeks, falling to $4.67 per share on October 21, 2022.
The plaintiff alleges that Cohen’s manipulative scheme and materially false and misleading statements artificially inflated the price and trading volume of Bed Bath & Beyond securities from August 12 to August 18, 2022, earning Cohen about $58 million in illicit profits at the expense of the Company’s public investors.
What To Do Next
If you purchased or otherwise acquired Bed Bath & Beyond’s common stock (including those who bought to cover a short position) or call options, or sold Bed Bath & Beyond put options, from August 12, 2022 through August 18, 2022, and want to join the class action, call Steven J. Toll, Esq. at 202.408.4600 or email email@example.com for more information. You may also PLEASE CLICK HERE TO CONTACT THE FIRM.
There is no cost or obligation to you. All representation is on a contingency fee basis.
About Cohen Milstein Sellers & Toll PLLC
A recognized leader in shareholder rights litigation, the attorneys and staff of Cohen Milstein Sellers & Toll PLLC has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago, Philadelphia, Raleigh, Palm Beach Gardens, and Washington DC. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
Steven J. Toll, Esq.
Cohen Milstein Sellers & Toll PLLC